Torex Gold Resources' Morelos Gold Project Advances

(REUTERS) -- Torex Gold Resources said it signed long-term lease agreements with land holders for construction and mining at its Morelos gold project in Mexico, paving the way for commercial production at the site.

The agreement with Rio Balsas Ejido has been signed for the use of 507 hectares of land, the company said. It also signed similar agreements for 77 individually owned land parcels.

The gold miner, which fully owns the project, said the land deal will help it sign agreements on all lands required to put the property into commercial production, Torex said in a statement.

The lease agreement involves annual payments of 23,000 pesos per hectare, during the first two years, the company said.

The Morelos project is located in Guerrero state, about 180 kilometers to the south-southwest of Mexico City.

Torex had suspended drilling at the site in March, following some criminal activity and violence.

Torex shares, which lost close to a fourth of their value in the last six months, closed at C$1.41 on Thursday on the Toronto Stock Exchange.